10 Cities Where You Can Afford Rent Making $15 an Hour

Are you familiar with the “30 percent rule” in housing?” It’s the general formula that states an individual or family should target to spend 30 percent of household income on rent or a mortgage. That’s the level at which you can live affordably while still having money for other monthly budget items and savings. Whether you’re on contract, salary or hourly wage, you should target 30 percent of net income on where you lay your head at night.

For many, especially in big cities, that’s a difficult figure to stay within. For those making mid-to-lower incomes, 30 percent is a big chunk. Fortunately, there are many livable, vibrant cities across the nation where that dollar will stretch further.

Here are the 10 cheapest cities where you can live while making $15 an hour in a full-time job.

10. Tuscaloosa, AL

Like any other college town, Tuscaloosa is an affordable city for renters. This is good news for off-campus renters among the University of Alabama’s 38,000 students. With an average monthly rent of just over $800 for a one-bedroom, students splitting study time and a full-time job can find affordable housing.

Collegiate life dominates Tuscaloosa both in the classroom and on the football field. But the college town’s economy is much more than just ‘Bama. A full quarter of all Tuscaloosa residents work in government or public sector jobs. Other prime sectors consist of healthcare, hospitality and manufacturing.

That last vertical includes a major Mercedes-Benz assembly plant which employs over 4,000. You might even catch Crimson Tide coach Nick Saban rolling around town in his Signature Series Mercedes-Benz Sprinter. The extravagant van is a $200,000, nine-passenger mobile tailgate party with three TVs, a pro A/V system, a cooler, hardwood floors and massage chairs. Roll Tide.

9. Rockford, IL

About 90 minutes northwest of Chicago and southwest of Milwaukee is the rust belt city of Rockford. One of many Midwest manufacturing and automobile cities that boomed half a century ago, Rockford is a bit different. The auto industry still provides here. Jeep assembles its Cherokee model on the edge of town at the Belvidere Assembly Plant. The plant, which assembled over a dozen Chrysler, Dodge and Jeep models over the years, is the largest employer in town, with over 4,300 workers.

Rockford is actually the largest city in Illinois outside of greater Chicago. And it’s also affordable. You only need to earn $15 an hour to afford an average one-bedroom apartment, which leases for $781. As such, it has become a post-pandemic virtual commuter town for those that need only to appear in person at an office in Chicago a few times a month.

Away from work time, Rockford is a well-known locale for dendrophiles, a.k.a. tree lovers. It has held the moniker of “Forest City” for over a century and a half. Rockford’s historic tree canopy can be enjoyed at places like Anderson Japanese Gardens, Klehm Arboretum, Tinker Swiss Cottage and the Burpee Museum of Natural History.

8. Akron, OH

The city of Akron is where the rubber meets the road — quite literally. Akron has long been known as the “Rubber Capital of the World.” There was a time that 300 million auto tires a year were made in Akron. The city was home to every major manufacturer: Goodyear, B.F. Goodrich, Firestone, General Tire and Kelly-Springfield. While not manufacturing in such numbers, the city is still an important rubber hub today.

The former manufacturing center fell on hard times at the end of the last century, like many Rust Belt cities. But recently, Akron has started to bounce back. It has taken on a new moniker as the “City of Invention.” Akron has broadened its rubber dependence out to become a world leader in polymer research and production. The region is now known as Polymer Valley.

There are a ton of interesting things to do and see in Akron. Quaker Square was the original manufacturing site of Quaker Oats. The city is home to the All-American Soap Box Derby race. And it’s also the founding locale of Alcoholics Anonymous, which is celebrated each year on Founders Day. As well, each July brings the annual National Hamburger Festival — the hamburger is said to have been invented here.

Akron is also the birthplace of LeBron James, Stephen Curry and Chrissie Hynde. Those celebrities probably make a lot more than $15 an hour. But that’s all you need to afford an average one-bedroom apartment that runs just $774 a month.

7. South Bend, IN

The most famous college town in America? It just might be South Bend. Under the watchful eye of Touchdown Jesus, the campus of Notre Dame sits under the shadow of the iconic Golden Dome. In fact, it’s easy to forget the “town” part of this college town.

Everyone knows Notre Dame, from Rudy to Knute Rockne, All-American. But the city of South Bend itself is the fourth largest in Indiana. And it was recently thrust into the national spotlight for something other than football. U.S. Secretary of Transportation Pete Buttigieg was the city’s mayor for eight years before becoming presidential hopeful “Mayor Pete.”

But despite South Bend’s cachet — and proximity to Chicago — it’s an incredibly affordable city. Its low cost of living, abundant free activities and inexpensive entertainment options led it to be named one of the top 10 cities for “cheapskates.” And that holds true with rents, as one-bedroom apartments list for just $753 on average, nearly 14 percent cheaper than a year ago. That requires just $14 an hour for fans, students and residents alike to afford.

6. Lubbock, TX

Of all the cheap college towns that make our list, Lubbock is the biggest and perhaps most isolated. Set in northwest Texas, it’s the only population center for 120 miles in any direction. But this city of 260,000 is centered on the 40,000 students at Texas Tech University. And unlike other Texas cities like Dallas or Houston, Lubbock is downright cheap. Just $14 an hour allows you to afford an average one-bedroom apartment, renting for just $730 a month.

But Lubbock isn’t just for college students. A plethora of young adults and young families are taking the most advantage of low rents. In fact, Lubbock is the city with the highest percentage of millennial renters anywhere in the South. More than 54 percent of renting heads of households are under age 35. And despite the city’s deep cotton history, there’s plenty for the young, hip Lubbockite. Among Instagrammable cultural spots are sites, including the Buddy Holly Center, Lubbock Arboretum, Science Spectrum Museum and Prairie Dog Town.

Want to show off your wine-tasting knowledge? Lubbock is a surprising spot for it. The region produces 80 percent of Texas’ wine grapes. Sample them all at one of five wineries open to the public. More of a night owl? Lubbock’s Depot District is not your typical college town bar strip. The former railroad depot off downtown offers trendy pubs, live music venues, theaters, nightclubs and upscale restaurants.

5. Sioux Falls, SD

If the everyday stresses of work and finances are making you feel lousy, why not check out the healthiest city in America? That spot is Sioux Falls, the largest city in the Dakotas.

Wide-open ranges, fresh and clean air and an outdoor-loving population help make it the nation’s top healthy city. Leading indicators include 90 percent of residents have health insurance, more than 95 percent are food secure and less than 30 percent are obese. Sioux Falls residents report less than 2.5 days a month of either poor physical or mental health, a full day below the national rate.

But what could be healthier for you than not worrying about rent? You won’t have to in Sioux Falls. The city averages $728 a month for a one-bedroom. That’s an affordable figure for anyone making at least $14 an hour. No wonder the city was also named the top city for young professionals “who want to make more money, live cheaply and have fun.”

4. Tulsa, OK

Sure, Oklahoma City may have the status, the name recognition and the NBA franchise. But ask around the South Central U.S., and many will tell you that Tulsa is the most exciting and metropolitan city in the Sooner State. Tulsa is no sleepy old oil town. Centered in a metro area of over a million residents, Tulsa is a modern, clean, cosmopolitan city. It’s a boomtown of big money, tech corridors and office towers.

Tulsa offers a bustling downtown teeming with activity. Within the downtown region are a number of entertainment hotspots. The Blue Dome District is a nightlife destination known for live music and nightclubs. The Arts District offers old school music venues, art galleries, warehouse lofts, breweries and cafés. And the Deco District is famous for its Art Deco buildings and skyscrapers, cozy lunch spots, urban parks, boutique hotels and the Tulsa Performing Arts Center.

Tulsa’s economy may have been built on oil derricks, but that’s the past. Today, Tulsa is a thriving tech hub, healthcare center and finance core. But you don’t need to be a finance guru to afford to live in this exciting city. Monthly rents for a one-bedroom average just $716. That’s within target affordability for those making at least $14 an hour.

3. Cedar Rapids, IA

You know winter, spring, summer and fall, but do you know the fifth season? In Cedar Rapids, the “fifth season,” a slogan adopted wholeheartedly by the city, represents the extra time created by the city’s well-known short commute times to get out and enjoy the other four seasons.

The tree-like symbol of the Five Seasons can be seen everywhere around town, and Cedar Rapids takes it to heart. The eastern Iowa city, the state’s second-largest, is unexpectedly livable. It’s an under-appreciated hub for arts, culture and outdoor recreation. A bevy of museums and galleries include the Cedar Rapids Museum of Art, Iowa Orchestra and the National Czech & Slovak Museum. Out in the fresh air, the city offers more than 70 municipal parks and green spaces, a children’s zoo, 24 miles of walking and bike trails and, of course, rapids.

With everything Cedar Rapids has to offer, it’s incredibly affordable. Averaging just $668 a month, the city enjoys the cheapest rents on the Great Plains. That translates into one-bedroom affordability while needing to make just $13 an hour.

2. Toledo, OH

You can affordably live in the cheapest city for renters in the entire Midwest by making just $13 an hour. And that doesn’t mean you have to live in some far-off farm city in Nebraska or South Dakota. With a one-bedroom apartment averaging just $651 a month, Toledo is the second-most affordable city in the nation. And that figure represents a near 22 percent drop in rent prices over the last year.

And Toledo’s affordability belies its livability. Like many of its Ohio brethren cities, Toledo is a modern city on the rise. For a dozen seasons, Toledo was mocked relentlessly as Corporal Max Klinger’s beloved hometown on the iconic sitcom “M*A*S*H.” The city’s ethnic diversity, cuisine and underachieving Mud Hens baseball team were punchlines deriding Toledo’s small town-ness.

But Klinger — and Toledo — always got the last laugh. Like Cleveland or Columbus, today’s Toledo has become a city of nightlife, culture and a booming economy. The city is a Great Lakes hub for the arts, education and green energy. It’s also known as the “Glass City,” owing to its long glass industry history, producing everything from soda bottles to windshields.

Away from work, Toledoans can also enjoy a very livable city. The Toledo Zoo was named the top zoo in the nation. And devotees of the 4077th already know that Tony Packo’s Café features the best Hungarian hot dogs, which are actually traditional Kolbász sausages.

1. Montgomery, AL

The three biggest cities in Alabama, Birmingham, Mobile and Montgomery, are all about the same size. But the state capital of Montgomery is the best value as the city with the most affordable rent in America. You can afford an average one-bedroom in Montgomery on just $12 an hour. The city’s average monthly rent is just $614, which is down nearly 8 percent from a year ago.

Montgomery has a deep history from Civil War to Civil Rights. It was the first capital of the South at the start of the War Between the States. The city was named the capital of the confederacy in 1861, a title it held for a year. A century later, Montgomery was at the epicenter of the Civil Rights movement.

You can visit the history today. Civil War buffs can stop by the First White House of the Confederacy and the Blue & Gray Museum. And Civil Rights aficionados can experience the Southern Poverty Law Center Civil Rights Memorial and the Rosa Parks and Freedom Riders museums.

But Montgomery is a thriving, modern Southern city, as well. The Gump City features one of the nation’s top mid-sized city arts hubs, a genre-mixing music scene and a walkable downtown. And for outdoor time, the city offers over 1,600 acres of public parkland.

The 50 cheapest cities to rent

If you expand this list out to the top 50 cities, patterns emerge. First, you can live in one of the 50 cheapest cities in America and still only have to earn under $24 an hour to keep the 30 percent rule in an average one-bedroom. While that’s still over three times the federal minimum wage, it’s well within many household budgets.

But the starkest observation is one of geography. Among the 50 cheapest cities for renters, 16 are in the Midwest and 32 are in the South. Just one, Tucson, AZ, at No. 43, is in the West. None are in the Northeast. No city in the Northeast shows up until Rochester, NY, way down at No. 67.

The 10 most expensive cities to rent

Conversely, the 10 most expensive cities are the usual suspects. New York, Boston and San Francisco are among the highest cost-of-living cities in America. So, it only goes to expect they are also the top three most expensive for renters.

Those three cities, along with the Boston suburb of Cambridge, would all require you to earn over $70 an hour to be able to set aside 30 percent of income for average one-bedroom rent. In New York, to hit the 30 percent rule, you would need to make a ludicrous $107 an hour, where the average single rents for $5,584 a month.

And 3,000 miles away, half of the top 10 most expensive cities are in the expensive state of California. In fact, 26 of the 40 most expensive are all in the Golden State.

Look for affordable rent when evaluating a new city

As the details show, the cities with the cheapest rent tend to be in the cheapest parts of the country overall. The Great Lakes and the Deep South are among the places where you don’t have to make a lot to afford a reasonable rent.

The 30 percent rule may be a contentious theory. Some experts stick to it, while others dispute its accuracy. In either case, it’s a great rule of thumb when beginning a search for a new apartment. Whether you’re moving to a new city or a new place within your city, it’s important to correctly budget your rent into your expenses.

Methodology

We dissected rents and income for nearly 200 of the largest cities in the U.S. with more than 100,000 residents and a qualifying number of available rental units. From there, we took 30 percent of the average rent to determine what experts recommend renters spend each money. Then, we divided that by 173.3 hours (the monthly amount worked for a 40-hour-a-week employee for 52 weeks) to determine the hourly wage needed to afford rent.

Rent prices are based on a rolling weighted average from Apartment Guide and Rent.’s one-bedroom multifamily rental property inventory as of November 2021. Our team uses a weighted average formula that more accurately represents price availability for each unit type and reduces the influence of seasonality on rent prices in specific markets.

The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.